Illustrative Minimum Rate of Return Calculator
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Illustrative Minimum Rate of Return Calculator
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Bank Interest Rate0.05%
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5 year US Treasury Yield (2)1.12%
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Bank account
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YearDateCash flowDescription
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14/14/2018 9:57:33$250,000Initial deposit
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24/14/2018 9:57:33-$150,000
Bank fails, moneys above 100,000 eur/dollar protection scheme converted to equity (presumed worthless)
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34/14/2018 9:57:33$125
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44/14/2018 9:57:33$125
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54/14/2018 9:57:33$125
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4/14/2018 9:57:33$125
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Total$100,500
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Compounded Annual Growth Rate-8.71%
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Spread between UST & CAGR9.83%
Minimum depositors (unsecured investors) should require as an interest rate
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Multple of Deustche Bank's current rate
196.60x
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1 Bank depositors are INVESTORS in a bank. They are unsecured creditors (lenders) to the banks.
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2 The US Treasury yield is as close to risk free as you can get, since the .Gov may never technicaly default. It can simply plrint more money to pay debt service at will.
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